India's leading food delivery company, Swiggy, is once again in the spotlight. The company is now preparing to raise 10,000 crore rupees in funding. This move is considered crucial for the company's expansion and business strengthening.
Business News: Food delivery company Swiggy is once again in the news. The company is now preparing to raise 10,000 crore rupees. This proposal was approved by the company's board on November 7. Market experts believe that this move could be a strategic preparation ahead of Swiggy's IPO, allowing the company to strengthen its balance sheet and expand its new business models.
The company stated that these funds would be raised through Qualified Institutional Placement (QIP) or other public and private offerings in one or more rounds. However, shareholder approval and regulatory clearances are still pending. Currently, Swiggy's market capitalization exceeds 1 lakh crore rupees.
Funding Method
Swiggy has stated that these funds will be raised through Qualified Institutional Placement (QIP) or other public and private offerings in one or more rounds. However, shareholder approval and regulatory clearances are still pending for the implementation of this proposal. Currently, Swiggy's market capitalization exceeds 1 lakh crore rupees.
Financial and strategic experts state that large companies typically use the QIP route to raise capital from institutional investors and mutual funds.
Financial Status: Efforts to Reduce Losses and Increase Revenue
In the July-September 2025 quarter, Swiggy's net loss was 1,092 crore rupees, compared to 626 crore rupees a year earlier. However, the company saw a rapid increase in revenue from operations, which rose from 3,601 crore rupees to 5,561 crore rupees. This clearly indicates that Swiggy is continuously increasing its business volume, even if it is currently incurring losses. The company has formulated a strategy to enhance long-term profitability through its investments and operational improvements.
Swiggy's shares closed at 401.60 rupees on the BSE on Friday. So far in 2025, the share price has fallen by approximately 26%. Despite this, brokerage houses and market analysts view Swiggy's future positively. ICICI Securities has given a ‘Buy’ rating on Swiggy's shares, setting a target of 740 rupees. Motilal Oswal has set a target of 550 rupees for the share.
Business Restructuring and New Plans
Swiggy has transferred its quick commerce business, Instamart, to a separate unit named Swiggy Instamart Private Limited. This will now be a 100% subsidiary of Swiggy. The board approved this move in September 2025. Additionally, the company sold its entire stake in the bike-taxi service Rapido for 2,400 crore rupees. Swiggy had purchased a 12% stake in Rapido for approximately 1,000 crore rupees in April 2022.
Experts believe that these steps reflect Swiggy's focused business strategy, where the company is increasing its focus on its core food delivery business and monetizing non-core investments.
